The DeLuca & Associates Blog

Can Lenders Ignore Bankruptcy Court Discharges?

Filing for bankruptcy can be a hard decision to make. Once made, those who have declared, undergo intense scrutiny in hopes that their debt will be discharged. Once discharged, the debts are legally required to be removed from the declarer’s credit report.

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When Banks Fail to Comply: Don’t Repay Discharged Debt

Bankruptcy is set up to allow debtors a reprieve from bills that they are unable to pay. The financial scrutiny they face is intense— every bill, bank account, asset, possession and debt is examined thoroughly. Then, if the courts decided that an individual should be granted a discharge, they are allowed what essentially amounts to a fresh start. The debtors take a hit on their credit report that will be visible for almost a decade, but in exchange, most debts are wiped out or restructured.

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Tips For Filing Taxes After Bankruptcy

One of the most important things for people that have recently filed for bankruptcy to keep in mind is that taxes still need to be paid after filing for chapter 7 or 13. It can be confusing determining when and how much to pay in taxes, especially if you have to file taxes for individual returns and your bankruptcy estate. If you are unsure of what you need to do in order to pay all necessary taxes, here are some helpful tips to guide you in the right direction to getting your finances back on track.

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Which Comes First: Bankruptcy or Divorce?

With divorce being one of the leading causes of people filing for bankruptcy, it is important to make sure that both situations are filed appropriately and handled with extreme care. Fortunately, some steps can be taken to help you make your divorce and bankruptcy filings less expensive and more beneficial for both parties. Making the decision to file for bankruptcy before or after your divorce depends on a few factors, which could help to determine the best course of action. Here is what you need to know when filing for divorce and bankruptcy.

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Discharging Student Debt with Bankruptcy

Student loans are one of the most difficult forms of debt to discharge through bankruptcy. In most cases, student loans remain even after a bankruptcy has been successfully filed by a debtor. Even though it is difficult to wipe out student debt, it’s important to keep in mind that it is not impossible.

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How to Buy a Home After Bankruptcy

Getting back into good financial shape after a bankruptcy is a long and tedious process, so much so that the idea of home ownership can seem like nothing more than a dream. However, after filing for bankruptcy, there are certain steps you can take to get yourself back on track, and on the road to financial freedom once again.

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5 Tips for Rebuilding Your Credit After Bankruptcy

Filing for bankruptcy can cause even the highest of credit scores to plummet deep into the subprime lending zone. Whether you start in the high 700s or in the low 600s, a bankruptcy will most likely drop your credit rating well below 550. Being in this “subprime” lending zone means that an individual will have difficulty obtaining loans, if they can obtain loans at all. Often, after being turned away from traditional lenders, these individuals are forced to take out loans at a high interest rate. High interest rates can translate into tens of thousands of dollars worth of extra expenses over the life of some loans.

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Is Caesars Headed For Bankruptcy?

With 52 casinos around the globe and roughly 68,000 employees, Caesars Entertainment is one of the largest gaming companies in the world. Recently, the casino conglomerate has found itself in debt to multiple sources to the tune of nearly $24.2 billion. With many financial experts predicting that Caesars Entertainment is heading straight for bankruptcy, the top name in gaming is reaching out to some of its bank lenders to try and reduce their debt. But even with help from creditors, is it enough to stave off declaring bankruptcy?

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Bankruptcies on the Rise Due to Medical Debts

Health care spending in America is expected to reach a startling $4.8 trillion by 2021. That number is up from $2.6 trillion in 2012, and only $75 billion in 1970.  With medical expenses rising so rapidly in the United States, it’s no wonder that the number of Americans unable to afford health care is rising with them. Many assume that if they are covered by health insurance, they will be protected from significant medical costs in the event of an emergency. Unfortunately, many still find themselves with saddled with serious debt after a trip to the hospital. Of the millions of Americans unable to keep up with their medical bills, nearly 10 million had year-round medical coverage at the time.   Medical debts leading to bankruptcy Outranking both unpaid credit cards and unpaid mortgages, medical debts have become the number one cause of bankruptcy filings in the United States. It is estimated that nearly three in five bankruptcies are filed due to medical debt. An unnerving one in five Americans are struggling with crippling medical debts, and of those, nearly 2 million will be forced to file for bankruptcy as a result. Discharging medical debt  Medical bills are an unsecured, non-priority debt. An unsecured debt is one that is not backed up by an underlying asset, such as a house or car. A non-priority debt is not collected until after all other debts have been settled. This means that if you choose to file for bankruptcy, medical bills are repaid after everything else. The majority of medical debt gets discharged when filing for bankruptcy, and debtors end up paying... read more

The Bright Side of Filing for Bankruptcy

Once you have reached the point where you consider filing for a bankruptcy as your best option, you may find it difficult to see the positive aspects of the situation. You find yourself in an economic hole, and have no idea how you will claw your way out so you may once again see financial security. While your mind may be filled to the brim with every negative scenario, there is a bright side to using bankruptcy to get your debts under control. A recent study by the National Bureau of Economic research revealed that filing bankruptcy increases an individual’s annual earnings, increases their lifespan, and decreases their foreclosure rate.   Filing for bankruptcy can save your life Americans carrying a large amount of debt will live longer if they choose to file for bankruptcy. Struggling with a mountain of debt that you are unable to pay can cause tremendous amounts of stress, and wreaks havoc on both physical and mental health. Independent of any other demographic factor, individuals who are unable to pay their debts have a spike in mortality rates compared to those who are more finically secure. Mortality rates are significantly reduced among those individuals who have the burden of financial instability lifted off of their shoulders. Filing for bankruptcy allows those who owe debts that they cannot pay to come up with a feasible repayment plan. This lets them to face their bills head on instead of allowing them to remain unpaid. Filing for a Chapter 13 bankruptcy often helps individuals to avoid home foreclosure, and other devastating life events. Increase your annual wages In... read more